The Risk and Insurance Management Society (RIMS) has released a new executive report that highlights the importance of reauthorising the Terrorism Risk Insurance Act’s (TRIA) to protect US businesses from the effects of terrorism.
Terrorism Risk Insurance Act: The Commercial Consumers’s Perspective—authored by members of the RIMS external affairs committee—explores the evolution of TRIA and also highlights RIMS’s official position in support of its reauthorisation.
The report is designed to educate risk professionals on the TRIA implementation process, ongoing initiatives set to strengthen the society’s advocacy, as well as a section responding to opposing views of the programme.
“The challenge of predicting the extent of damages that could result from terrorism prevents insurers from providing their clients with adequate and affordable insurance. This uncertainty has forced organisations to rely on TRIA to fulfill those coverage gaps,” said RIMS board director Carolyn Snow.
“With no indication from government as to their plans for the future of TRIA, risk professionals and insurance providers will run into major roadblocks when developing suitable risk financing programmes, especially during the renewal process,” added Snow.
Earlier this year the Self-Insurance Institute of America increased its lobbying efforts to push for passage of federal legislation to reauthorise TRIA.
As a result of meetings with key members of congress, the SIIA has learned that many are reluctant to support the reauthorisation, primarily due to increased skepticism of the federal government and its role in the private insurance marketplace.
